Retirement Plan

timer Asked: May 25th, 2013

Question Description


1.  At my current age
of 45 years of age, I would like to retire at the age of 62 years of age that
will mean that will have 17 years to reach my goal.

2.  At 4% APR my goal
will be to retire with $500,000.00 saved during the 17 years, with an annual contribution
of $29,420.00 till age 62.


3. Assume you are about to set up a new retirement savings
account at a 4% annual interest rate (APR). Based on how you want to live in
retirement, and any other sources of retirement income you have available, how
much money do you think you will need to draw from your savings account to
enjoy how much each year?

4. What contribution plan can you follow in order to finance
your new retirement account to reach this savings goal?

Formula to use:

A = PMT x [(1 + APR/n) (nY) - 1] divided by below


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